U.S. furniture, bedding retail sales top $114 billion in 2019

HIGH POINT — Total U.S. sales of furniture and bedding totaled an estimated $114.5 billion this year, according to estimates from Furniture Today, which are based on personal consumption and expenditure data from the U.S. Department of Commerce’s Bureau of Economic Analysis.

According to the estimates, furniture and bedding sales in the U.S. are up 2.8% from last year. This marks the slowest growth, by a slight margin, since 2016. The slower growth can possibly be attributed to President Trump raising tariffs on China, which has significantly impacted the furniture industry.

The economy continued to trudge along this year, albeit at a somewhat slower pace than in previous years. Real GDP and real disposable income both grew at a slower pace in Q2 in 2019 than they did one year ago. Real GDP only increased 2% in Q2 from one year ago, while real disposable income grew 2.5% during that same period.

However, there are bright spots as unemployment was down a tick this past August, while median household income was up. Median household income reached $63,179 in 2018, up 0.9% from the previous year.

Those under the age of 25 had the largest median household income growth, which increased by 9.1% from 2017 to 2018. The 25-to-34 age bracket experienced the second largest growth (5%) over that same period.

Housing starts were up 6.6% across the U.S this past August, with all regions seeing growth except the West, where housing starts decreased 4.8% from one year ago. Housing permits were up 12% in August from one year ago, with all regions experiencing growth except the Midwest, which declined 1.6%.

Consumer Confidence was at 125.5 in November, down from 126.1 in October. This marks the fourth straight month of declines in Consumer Confidence. The Expectations Index, an assessment of consumer’s short term outlook on income, business and labor market conditions, was up in November from the previous month.

Lynn Franco, senior director of economic indicators at The Conference Board, saw nothing to be worried about as 2019 draws to a close. “Overall, confidence levels are still high and should support solid spending during this holiday season.”

Sales expect to jump 21.7% by 2024

Based on estimates developed with Furniture Today’s Strategic Insights team and Easy Analytic Software Inc. (EASI), Furniture Today anticipates the total furniture and bedding market will exceed $139.4 billion by 2024.

This is a 21.7% growth from the current furniture and bedding market, which Furniture Today and EASI peg at $114.5 billion.

Stationary chairs are projected to have the most rapid growth over the next five years, at 25%, with home office furniture, not including desks, also projected to grow at the same pace.

Stationary and sleeper sofa sales should exceed $21 billion by 2024, the largest sales volume among all categories.

Bedding, which includes mattresses and box springs, is a close second, at a projected $20.5 billion by 2024.

Utah is slated for the fastest growth in furniture and bedding sales from 2019 to 2024, at an estimated 26.3% increase. South Dakota (25.2%) and Idaho (25.1%) rank second and third in projected total sales growth. Overall, Furniture Today and EASI anticipate that 23 states will grow their furniture and bedding sales faster than the national average over the next five years. That list of states also includes Washington state, Washington D.C., Colorado, Montana, North Dakota, Florida and Texas.

Bozeman, Mont., leads all major metros in projected furniture and bedding sales growth over the next five years, at 29.3%. A major metro is defined by the U.S. Census as a core urban area with 50,000 people or more.

Utah is home to the next three leading major metros in projected sales growth, as Provo-Orem, St. George and Cedar City are all slated for rapid furniture and bedding sales increases.

Greenley, Colo., rounds out the top five fastest growing major metros, with an anticipated sales jump of 28%.

U.S. furniture, bedding retail sales top $114 billion in 2019

 

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